It’s important to speak to your financial adviser to ensure that you understand exactly the cover you have in place and what it will pay for.
Medical aid cover pays for medical expenses incurred on an individual basis. Critical illness cover pays for the cost of lifestyle adjustments following the diagnosis of a critical illness. A holistic financial plan includes both of these products.
For example, in the case of stage 0 breast cancer a medical scheme would cover the costs of tests used to diagnose the cancer and treatment required, which can be very expensive. This can be in full or based on a benefit scale.
A critical illness product, however, will not pay out for this diagnosis as the impact on the customer’s lifestyle and the amount of money required to make lifestyle adjustments is very limited.
If, however, the policy holder was diagnosed with stage 1 cancer and had the top-up option to their Living Lifestyle benefit, then the critical illness cover would pay out in full.
How the funds are allocated is up to the policyholder and her needs, but it could be used for reconstructive surgery and other lifestyle changes, for instance in the case of a mother, a caregiver could be hired to look after the children.
Critical illness cover is also the most likely policy to be misunderstood because of the significant number of conditions covered by it. Many people are also not familiar with medical terminology used to describe an illness or details of diagnostic procedures and tests used for assessing the severity of a condition.
If you have existing cover or wish to take out critical illness cover, it is important to discuss the product details with your adviser so that you are able to maximise your benefit.
Questions to ask your adviser:
What conditions are covered?
What severity of illness does it cover?
How soon after diagnosis will I be paid? |
